Kasikorn Securities aims to double share

Brokerage returns to parent bank's roots

NUNTAWUN POLKUAMDEE

Kasikorn Securities, a unit of Kasikornbank, hopes to more than double its market share to 1.5% this year from 0.6% now through a rapid expansion of new full branches and cyber branches. KSEC chairman Rapee Sucharitkul yesterday presided over the formal opening of the company's first branch at the Kasikornbank office on Sua Pa Road in Bangkok's Yaowarat district.

''It's modelled as a full-service business centre, where investors can conduct all their financial business in one location,'' he said.

Sua Pa was the site of bank's first head office when Kbank, then known as Thai Farmers Bank, was founded 61 years ago, Mr Rapee noted. ''Kasikornbank still services its clients from its very first office here. So we thought that we should also open our first branch here too.''

Mr Rapee acknowledged that the target of reaching a 1.5% market share was quite ambitious, given that KSEC has been in operation for less than two years and that market sentiment remained poor due to economic and political uncertainties.

''The market environment is poor, and it's difficult to predict the future. We can't say what the right [Stock Exchange of Thailand] target is for next year, but we can only do our best to persuade our clients to invest in stocks or alternative investments,'' he said.

KSEC doesn't plan to open any new full-service branches this year, but will instead focus on smaller, more flexible cyber branches in high-traffic areas. Cyber branches rely heavily on online trading technologies and cost less to open and operate than full-service branches.

''Investors have changed the way they trade. Instead of coming to the trading room, more investors simply call our marketing staff or use Internet trading for their orders,'' Mr Rapee said.

KSEC currently has 3,500 trading accounts, but hopes to expand to 20,000 by the end of the year, with a focus on wealthy Kbank clients.

Mr Rapee said competition was high in the securities sector, and that the broker was open to bringing in a strategic partner to strengthen its operations.

''But this would only come once we are ready to achieve our target in market share, and only if there's a clear benefit for operations,'' he said.

Since opening earlier this month, the Sua Pa branch has signed up 200 trading accounts. Ten Kasikornbank branches located in the vicinity will also help promote KSEC's securities services to their clients.

Bangkok Post

Saturday March 31, 2007